HVO Price Singapore: What Renewable Diesel Costs vs ULSD in 2026

HVO100 costs more than fossil diesel. How much more — and whether that premium is worth it — depends on your fleet size, sustainability obligations, and how you account for carbon. This guide gives you the numbers and the framework to make the decision.

HVO vs ULSD Price Comparison Singapore (2026)

Indicative Q1–Q2 2026 Singapore market rates. HVO pricing tracks feedstock markets and ISCC certificate availability. Contact Interion for current pricing.

The premium is approximately 40–70% over ULSD depending on feedstock, certification, and order volume. For a fleet burning 500,000L/year, switching fully from ULSD to HVO100 adds S$300,000–500,000/year in fuel cost at current prices.

What Drives the HVO Premium?

Feedstock cost

HVO is produced by hydrotreating vegetable oils and animal fats. Used cooking oil (UCO) and tallow-based HVO are the most common feedstocks in Southeast Asia. Feedstock costs — driven by collection infrastructure, competing biodiesel demand, and export markets — are the primary driver of HVO pricing. When UCO prices spike (as they did in 2023 when Europe increased biofuel blending mandates), HVO prices follow.

Certification cost (ISCC)

ISCC-certified HVO carries a certificate premium. The certification verifies feedstock origin, carbon lifecycle accounting, and chain-of-custody from farm/collection to delivery. This premium is typically S$0.05–0.15/litre embedded in the product price. It’s not optional if you need the carbon reduction to count — uncertified “renewable diesel” provides no verifiable emissions reduction for Scope 3 reporting.

Logistics and supply chain

HVO is not yet produced domestically in Singapore — it’s imported, primarily from European and US producers. Import logistics, port costs, and storage infrastructure add to the delivered price. As regional HVO production capacity grows (several SE Asian projects are under development), this component should decrease over the next 3–5 years.

Is the HVO Premium Worth It for Singapore Fleets?

The answer depends on three factors:

Blending Strategy: Reducing Cost While Hitting Targets

Full HVO100 conversion is not the only option. Many Singapore fleet operators use a blending strategy to hit interim sustainability targets at lower cost:

• 20% HVO blend (B20-equivalent): ~18% lifecycle CO₂ reduction. Cost premium approximately S$0.10–0.15/L above ULSD baseline.
• 30% HVO blend: ~27% lifecycle CO₂ reduction. Cost premium approximately S$0.15–0.20/L.
• HVO100: Up to 90% lifecycle CO₂ reduction. Full premium applies.

Blending at the depot (not in the engine) is safe — HVO and ULSD are fully miscible. The ISCC certificate still covers the HVO component, so you can report the proportional emissions reduction accurately. See our full HVO vs Biodiesel comparison for technical details.

How HVO Pricing Is Quoted

HVO is typically quoted in SGD per litre or USD per metric tonne (MT) for bulk. Density of HVO100 is approximately 0.78–0.80 kg/L — slightly lower than ULSD (0.82–0.85 kg/L) — so litre-for-litre comparisons slightly understate HVO’s energy content advantage on a per-MJ basis.

Pricing structures available from Interion:

• Spot pricing: Per-delivery pricing tracking feedstock markets. Suitable for occasional or pilot HVO orders.
• Term contract: Fixed or formula-based pricing over 3–6 months. Provides cost predictability for budget reporting. Minimum volume typically 10,000L/month.